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Laws Of Speed And Lean Six Sigma

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Laws of Speed and Lean Six Sigma By Jay Arthur | Submitted On June 27, 2011 Recommend Article Article Comments Print Article Share this article on Facebook Share this article on Twitter Share this article on Google+ Share this article on Linkedin Share this article on StumbleUpon Share this article on Delicious Share this article on Digg Share this article on Reddit Share this article on Pinterest Expert Author Jay Arthur A recent book title argues: "It 's not the big that eat the small, it 's the fast that eat the slow." Speed is one of your keys to competitive advantage. The Power Laws of Speed In the book, Competing Against Time (Free Press 1990), the authors present compelling evidence for the power laws of speed. The 5% Rule: The actual time required to produce or deliver a service is only 5% of the total elapsed time. The 25-20 Rule: Every 25% reduction in elapsed time will double productivity and reduce costs 20%. The 3X2 Rule: Companies that routinely reduce cycle time enjoy growth rates three times the industry average with twice the profit margins Problem: Ad Hoc Processes Most processes, whether it 's ordering, billing, manufacturing, or fulfilling an order, evolve from ad-hoc processes cobbled together over time. To "reduce costs," work is handled in increasingly large batches by specialized individuals. Each employee is busy working hard, but their inbox stays full and their outbox becomes someone else 's inbox. The Customer 's "Lazy" Order

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